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LILLY v. COMMISSIONER

No. 158.

343 U.S. 90 (1952)

72 S.Ct. 497

96 L.Ed. 769

LILLY ET AL. v. COMMISSIONER OF INTERNAL REVENUE.

Supreme Court of United States.

Decided March 10, 1952.

Attorney(s) appearing for the Case

Randolph E. Paul argued the cause for petitioners. With him on the brief was Louis Eisenstein.

Solicitor General Perlman argued the cause for respondent. With him on the brief were Acting Assistant Attorney General Slack, James L. Morrisson and I. Henry Kutz.

MR. JUSTICE BURTON delivered the opinion of the Court.

Petitioners, Thomas B. Lilly and Helen W. Lilly, his wife, were engaged in the optical business in North Carolina and Virginia in 1943 and 1944. Pursuant to agreements reflecting an established and widespread practice in that industry in those localities, they paid to the respective doctors, who prescribed the eyeglasses which they sold, one-third of the retail sales price...

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